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SAP SAYS BUSINESSBYDESIGN ON SCHEDULE

Bill McDermottAn SAP executive said this week that his company's high-profile BusinessByDesign product is on schedule. That was the view expressed by Bill McDermott, a member of SAP's executive board in a presentation at the 2009 Citi Technology Conference. In a recorded session, McDermott said, "We are working with 100 clients now, called charter clients. All is going according to plan."

It's probably good he wasn't in the same room with NetSuite CFO Jim McGeever, who took a shot at BBD in a presentation at the same conference. Sniping at SAP, McGeever said, "We’ve heard it’s going to be in general release for every three months in the last three years. We are at the point now where we will believe it when we see it.” Of course, the antagonism has a bit to do with the fact that Oracle CEO Larry Ellison is NetSuite's major shareholder and Oracle and SAP are bitter rivals. My memory is that on time means it's on time with an adjusted schedule. Checking the archives of Consulting Insights, I find that I wrote about BBD in the May 9, 2008 edition I reported that SAP said it would, "engage with significantly less than 1,000 customers in 2008, and that instead of reaching $1 billion in revenue and 10,000 customers by 2010, it will take 12 months to 18 months longer". I guess 100 clients is a bit less than 1,000. McDermott hit back in answering a question about SAP's possibly losing market share to Oracle. He commented, "Oracle is not taking share from SAP. If you spend $50 billion in acquisitions, it can give one the illusion you are gaining market share." He continued that SAP's "Win rate ... hasn’t changed. If anything, it’s gotten better."
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